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Toronto Housing Starts Decrease in September 2016

TORONTO, ONTARIO--(Marketwired - Oct. 11, 2016) - Housing starts in the Toronto Census Metropolitan Area (CMA) trended lower at 37,947 units in September 2016 compared to 42,125 in August 2016 according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

"September saw fewer apartment starts in Toronto than earlier in the year, slowing the overall housing starts trend in the GTA," said Dana Senagama, CMHC Principal Market Analyst for the GTA. "However, limited supply of resale low-rise homes is shifting demand to the pre-construction market, leading to stable starts for this type of dwelling."

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next.

The standalone monthly SAAR was 30,232 units in September, down from 40,406 units in August. The decrease was mainly a result of fewer apartment starts.

The City of Toronto recorded the highest number of starts within the Toronto CMA primarily due to apartment starts. This was followed by the City of Brampton, which had a large number of single-detached starts. Next was the Town of East Gwillimbury that saw construction start on a number of new low-rise housing units.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.